From CMD s Desk. (Excerpts from CMD s Message)

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2 PARICHAYA F O U N D A T I O N D A Y From CMD s Desk Looking back, it gives us immense happiness and pride that today Nalco has emerged as the leading producer and exporter of alumina and aluminium in the country. Over the years Nalco has grown from strength to strength to build a formidable track record that has few parallels in the Public Sector. Nalco has not only changed the way aluminium was being made in India, but also pioneered the export of alumina and aluminium on international standards. Nalco created history of sorts in Indian aluminium industry not only by using State-of-the-art technologies, but also in production of world-class products, in implementing a proactive business development strategy, in creating new markets, in continuous process improvement and above all in achieving self-propelled expansion and growth. Another important aspect of Nalco s success has been its continuous thrust on expansion and growth. Having completed Rs.3700 crore 1st Phase expansion successfully, the Company is now all set to commission its 2nd phase expansion at an investment of Rs.4500 crore, raising the bauxite mines capacity to 63 lakh tonnes, alumina capacity to 21 lakh tonnes, Smelter capacity to 4.60 lakh tonnes and power plant capacity to 1200 MW. What is more important is that without losing any time, the Company has already started preparation for the 3rd phase expansion at an estimated investment of about Rs.6000 crore which will further increase the aluminium capacity to 6 lakh tonnes and power generation to 1500 MW. Apart from brownfield expansion, the Company is launching new projects in India and abroad. Nalco has already signed an MoU with Indonesian Govt. to set up a 5 lakh tonne Smelter and a 1250 MW power plant at an investment of Rs.14,000 crore. Besides, in Iran, a 3.10 lakh tonne Smelter has been planned as a joint venture with ALPHA (in which Kerman Development Organization is the major partner) at an investment of Rs.8000 crore. Nalco has also plan to start new projects in the country. A Mines and Refinery Complex is being planned in Andhra Pradesh consisting of a Bauxite Mines of 42 lakh tonne capacity and Alumina Refinery of 14 lakh tonne capacity. The project will involve an investment of Rs.7000 crore. In Orissa, a Smelter and Power Complex has been planned in Jharsuguda district at an investment of Rs.16,500 crore. This greenfield project envisages a Smelter of 5 lakh tonne capacity and a 1260 MW power plant. These gigantic projects would require huge efforts and resources in coming years. As you are aware, the prevailing global recession the worst of its kind in recent years has severely affected the corporate sector following unprecedented collapse of the financial sector. Prices of major commodities including metals like steel and aluminium - are declining at an alarming rate and if the trend continues, many Companies will be forced to go out of business sooner than expected. Our Company, Nalco too has been hit very hard and our sales realizations are coming down every month. Besides, the Company is facing acute shortage of coal for operating the Captive Power Plant, and hence forced to buy coal from other sources at higher rate. With the sales realizations falling and cost of production rising, the margins of the Company are under severe pressure. At this crucial juncture, I would like to emphasize again that all of us must come forward to handle the crisis by devising and applying all possible means to curtail costs and improve productivity in all the segments of our activities. We must ensure that our mines and plants are operated at full capacity and with efficiency, while keeping the consumption of raw materials, fuels and electricity within the norms. We must rise to the occasion and consider it our prime responsibility to achieve austerity in all spheres of our activities. The success of the past need not blur our vision of many grey areas of wasteful expenditures. We need to look at various means to become more cost effective. Our success in future will primarily depend on our ability to produce more and spend less. These are some of the areas that are going to be crucial for our survival and success in coming years. These are not difficult tasks. These need some more attention and sincere effort on the part of each one of us. Let us make a beginning with new enthusiasm and new vigour. (Excerpts from CMD s Message) 1 Published by : Corporate Communication Department, National Aluminium Company Limited, Nalco Bhawan, Nayapalli, Bhubaneswar Chief Editor : Harish C. Pradhan, DGM(Admn.) Designed and Printed at : Perfect Print & Graphics (P) Ltd., 154, Mancheswar Industrial Estate, Bhubaneswar , Ph: E-PARICHAYA AT You may send your feedback to hcpradhan@nalcoindia.co.in

3 F O U N D A T I O N D A Y PARICHAYA 8 th Edition of Nalco Foundation Day Lecture Eminent Environmentalist Dr. Rajendra Pachauri, who heads the Nobel Prize winning Inter- Governmental Panel on Climate Change, delivers Nalco Foundation Day Lecture. Similarly, the agriculture is also being adversely affected by the ongoing changes in climate as the recent studies shows that there is 5 to 10 % drop in yield for every degree of rise in temperature. Talking on managing climate changes, green house emission levels and the dangers, Dr. Pachauri raised hope that by ensuring effective policies, corporate investment decisions in this regard and a general awareness at the local levels may address the problem to certain extent. On the 29 th Foundation Day of the Company, Nalconians played host to eminent Environmentalist Dr. Rajendra Pachauri, Director General of The Energy and Resource Institute (TERI), who delivered the 8 th Nalco Foundation Day Lecture on January 6 at the Corporate Office, Bhubaneswar. Shri Ajit Tripathy, IAS, Chief Secretary, Govt. of Orissa, presided over the function. In his presidential remarks, he appreciated the social responsibility role played by Nalco and expressed his hope that the Company will continue to shoulder the progress of the home state for years to come. At the outset, Shri C.R. Pradhan, CMD I/c delivered the welcome address and the function concluded with a formal vote of thanks by Shri Joy Varghese, Director (P&A). I am touched by the warmth & hospitality I received. I am sure, Nalco would go from strength to strength in the future. (Dr. R.K. Pachauri) Addressing a select gathering of bureaucrats, technocrats, businessmen, media persons and Nalconians, Dr. Pachauri chose to speak on: Challenges of Economic Growth and Sustainable Use of Natural Resources. Dr. Pachauri said that the climate change induced by carbon and green house gas emission has begun to manifest itself in severe forms across the world. Explaining the adverse effects of rise in temperature, he said that the sources of fresh water have begun to shrink, impacting food availability, health and overall development. Dr. Pachauri also warned that the situation is growing grimmer day by day as we have over utilized the capacity of earth by 25%. Eminent Environmentalist Dr. R.K. Pachauri, began his career with the Diesel Locomotive Works, Varanasi. Subsequently, he went to the United States and joined the North Carolina State University and completed his MS in industrial engineering and obtained a Ph.D. in industrial engineering and also a Ph.D. in economics. On his return to India, he joined the Administrative Staff College of India, Hyderabad, as Member Senior Faculty and went on to become Director, Consulting and Applied Research Division. He joined TERI as Director in April In recognition of his contributions Dr. Pachauri has received a number of awards including Padma Bhushan and Padma Vibhushan. In April 2002, Dr. Pachauri was elected as the Chairman of the Intergovernmental Panel on Climate Change (IPCC), established by the World Meteorological Organization and the United Nations Environment Programme in 1988 (Re-elected in September 2008). IPCC along with former Vice President of United States Al Gore has been awarded the Nobel Peace Prize for the year

4 PARICHAYA F O U N D A T I O N D A Y Nalco Celebrates 29th Foundation Day Nalco celebrated its 29th Foundation Day at its Sites and Offices of the Company with much pump and gaiety on January 7. were prominently displayed at different locations. In the morning, toffees were distributed by Welfare Committee Members among students and teachers at SVM & DPS. In the evening, employees with their family members gathered in large number at Biju Patnaik Sports Complex, Nalconagar, to attend the colourful function. Crackers were burst amidst cheerful applause of the audience. At Bhubaneswar On the occasion, Shri C.R. Pradhan, CMD I/c, Shri P.K. Routray, Director (Production), Shri B.L. Bagra, Director (Finance), Shri Joy Varghese, Director (P&A) and Shri G. Kameswara Rao, CVO, lighted the ceremonial lamp and addressed the Nalconians at Nalconagar Auditorium. In his address, Shri Pradhan highlighted the expansion and growth plans of the Company. Further Shri Pradhan said that despite prevailing global recession, Nalco has been able to achieve considerably good results and also emphasized on curtailing costs in all spheres of activities during the on-going global economic slowdown. Earlier, at the outset Shri B.N. Swain, Executive Director (H&A) delivered the welcome address while a formal vote of thanks was proposed by Dr. A.K. Sahoo, GM(MS&A). The function concluded with a cultural programme of Odissi and folk dances. Renu Satpathy Memorial trophies, instituted by Nalco Ladies Club were also handed over to the students of Nalco family, who had topped in the Class-X examinations of CBSE, BSE and ICSE. Prof. (Dr) Sanatan Rath, eminent Neuro-Surgeon lighting the ceremonial lamp in the presence of ED and GMs of S&P Complex, Angul Prof. (Dr) Sanatan Rath, eminent Neuro-Surgeon and former Principal, SCB Medical College, Cuttack and Shri Arun Sharma, ED(S&P), graced the occasion and addressed the gathering. Shri S.S. Pattnaik, GM(H&A), delivered the welcome address. Besides Prof. Rath and Shri Sharma, Shri D.C. Sahu, GM (Finance), Shri S.S. Pattnaik, GM(H&A), Shri P.R. Choudhury, GM (Smelter), Shri R.P. Srivastava, GM(CPP), Shri D.K. Choudhury, GM(Project) and Shri Ajay Mishra, GM(UECB), lighted the ceremonial lamp to mark the occasion. In his address, Shri Sharma exhorted the employees to work as a team, with iron will and strong determination, to face the global meltdown. Nalco s past records indicate At S&P Complex 29th Foundation Day was celebrated for three days, starting from January 7. To mark the occasion, colourful banners Shri Parsuram Swain (recipient of Shram Shree) and Shri Gopabandhu Dash (recipient of Shram Vir) being felicitated by Shri A.K. Sharma, ED (S&P) 3

5 F O U N D A T I O N D A Y PARICHAYA that despite current financial recession, the Company s progress and pride will be unaffected due to its dedicated and multi-skilled workforce, Shri Sharma said. Refinery respectively. Seven differently-able persons of nearby villages were also handed over shawls and blankets on the occasion. Prof. Rath, also lauded the role of Nalco in shaping the economy of the State and the country, while bagging many national and international accolades. Shri Sharma felicitated Prof. Rath and the two Nalconians Shri Parsuram Swain, Chargeman, CPP (Winner of PM s Shram Shree Award) and Shri Gopabandhu Dash, Chargeman, Smelter (Winner of PM s Shram Vir Award). Shri P.R. Choudhury, GM (Smelter) and Shri R.P. Srivastava, GM(CPP), gave away the TQM prizes to the members of successful QC teams. Shri Ashok Sahu, DGM(HRD), proposed a vote of thanks. Cultural programmes were performed by local Music and Dance Schools, students of DPS, SVM and peripheral schools of Kukudang and Balaramprasad. At M&R Complex 29th Foundation Day was celebrated with much excitement at the Open Air Pendal, M&R Complex, Damanjodi. Shri P.K. Mohapatra, ED(M&R) inaugurated the two-day long celebration in the presence of Shri R.P. Swain, GM(H&A), Shri P.M. Prakash, GM (O&M), Shri G.Abbasvali, GM (Finance), Shri R.C. Das, GM (Proj), Shri Virender Singh, GM (Mines), Shri G.S. Mohapatra, DGM (Admn) and Shri S.D.Doval, Commandant, CISF. Cultural programmes by the students of DPS & SVM Among others, Shri B.B. Mohapatra, President, Nalco Mazdoor Sangh (RU of AR) and Shri Bipin Khemundu, General Secretary (RU of Mines) also conveyed their foundation day message, along with representatives of other trade unions, including, Shri P.K. Sahoo (President, Nalco Employees Union), Shri P.K. Mohapatra (Jt. Secretary, M&R Employees Union), Shri Anriruddha Khosla (Vice-President, Nalco Employees Association), Shri Subas Kuldip (Jt. Secretary, Nalco LDP Employees Union), Shri B.P. Das (President, Nalco Employees Technical Association), Shri B.K. Jena (Gen. Secretary, Alumina Refinery Progressive Union), Shri R.K. Sahoo (Gen. Secretary, Nalco Mines Operators Union), Shri S.C. Sethy (Gen. Secretary, Nalco SC/ST Employees Welfare Association) and Shri P.K. Satapathy (Gen. Secretary, Nalco Officers Association). Two day long cultural programmes were performed by the students of DPS & SVM, besides an orchestra also regaled the audience. At Vizag Shri P.K. Mohapatra, lighting the ceremonial lamp at M&R Complex, Damanjodi, on the occasion of 29 th Foundation Day of the Company In his address Shri Mohapatra, thanked all the employees for their dedicated efforts and expressed hope that with their cooperation and support, a steady growth can be achieved despite the recessionary phase. To mark the occasion, Shri P.K. Mohapatra and Shri R.P. Swain, felicitated 5 employees each from Mines and L to R : Shri GMP. Sharma, GM(PF), Shri D. Kamilla, IRSME, DRAM Waltier Division and Shri R.N. Mohapatra, DGM (Marketing) 4

6 PARICHAYA S T R A T E G I C A L L I A N C E Nalco-Rio Tinto Alcan in Strategic Alliance Agreement Nalco has signed a strategic alliance agreement with Rio Tinto Alcan (RTA) on December 11. The agreement was signed at Bhubaneswar, by Shri P.K. Mohanty, ED (CP&BD), and Shri Sandeep Biswas, Senior Vice President, Business Development, RTA in the presence of Shri C.R. Pradhan, CMD I/c, Shri P.K. Routray, Director (Production), Shri B.L. Bagra, Director (Finance), Shri S.C. Dash, ED (Finance) and other senior officials. The agreement will facilitate both the companies to share information to identify potential to create value for both the organizations. Since inception, Nalco has a technology collaboration agreement with M/s Aluminium Pechiney, presently which is part of Rio Tinto Alcan. The agreement with Rio Tinto Alcan, assumes significance in view of the ambitious growth plans of Nalco, both in India and abroad, involving an estimated investment of about USD 8 billion. The alliance is expected to help Nalco to enlarge geographical spread of the Company s operations. NALCO - RMMI MoU for Indonesia Project RMMI to have 24% stake in Aluminium Smelter joint venture Shri B.L. Bagra, Director (Finance), alongwith the Officials of Rak Minerals & Metals Investments (RMMI) Nalco has entered into an MoU with Rak Minerals & Metals Investments (RMMI), on December 19. According to the MoU, RMMI will have 24 per cent stake in Nalco s new aluminium project in Data Centre Inaugurated ERP implementation project achieved a milestone with the inauguration of the Data Centre at Corporate Office on January 7. The Data Centre was inaugurated by Shri C.R. Pradhan, CMD I/c, in the presence of Shri P.K. Routray, Director (Production), Shri B.L. Bagra, Director (Finance), Shri Joy Varghese, Director (P&A) and Shri G. Kameshwara Rao, CVO. The State-of-the Art Data Centre comprises the infrastructure which will be the nerve centre for critical business processes. All the application servers, disk storage systems and data backup servers have been installed in the data centre. Indonesia. The joint venture is aimed at creating synergic value for the two companies and will enhance commitment to the project. It may be mentioned that, earlier in January 2008, Nalco had signed an MoU with the Govt of Indonesia to set up a 5-lakh tonne smelter and a 1250 MW captive power plant at an investment of Rs crore. Against this background, the schedules of construction of port and rail corridor by RMMI and smelter and power plant by Nalco would be synergized more efficiently through this joint venture. While operations of the proposed smelter would leverage on RMMI s transport infrastructures in South Sumatra, the MoU also envisages actively scouting for other viable locations in Indonesia. 5

7 3 R D Q U A R T E R R E S U L T S PARICHAYA 3rd Quarter Results NALCO ACHIEVES Rs CRORE NET PROFIT According to the reviewed financial results for 3rd quarter of the financial year , taken on record by the Board of Directors in a meeting held in New Delhi on January 28, the company has achieved net profit of Rs crore, with a sales turnover of Rs crore. However, during the 3rd quarter of previous fiscal, the figures were up at Rs crore and Rs crore, respectively. The Company earned profit of Rs.445 crore from sales turnover of Rs.1676 crore in 2nd quarter of the current fiscal. The net profit and sales turnover for the 9 months ended December 2008 work out to Rs crore and Rs crore, respectively, as against the corresponding figures of Rs crore and Rs crore achieved during the first 9 months of the previous fiscal. The alumina sales during the 9 months of this fiscal have gone down to 6.05 lakh tonnes as against 6.27 lakh tonnes achieved during the comparable period of and the metal sales have also declined to 2.50 lakh tonnes from 2.61 lakh tonnes during the comparable 9 months of the previous fiscal. The lower sales and profit during the 3rd quarter are primarily due to the global recession and sharp fall in demand and prices of alumina & aluminium. CPP Boiler lit up Nalco achieved a major milestone by lighting up the Boiler of the 120 MW Unit of its S&P Complex, Angul on October 26. With this, the commissioning activity of new units of CPP has begun as per schedule. Nalco s CPP expansion is part of the on-going Rs.4500 crore 2nd phase expansion projects. At present the Company has installed capacity of 960 MW and with the commissioning of 2 units the capacity would increase to 1200 MW. Shri C.R. Pradhan, CMD I/c, Shri P.K. Routray, Director (Production), Shri Joy Varghese, Besides, the 2nd phase expansions, plans are afoot for 3rd phase expansion at an estimated cost of Rs.6000 crore. Under this expansion, the Company s aluminium capacity will further go up to 5.80 lakh tonnes and power generation to 1400 MW per annum. Commissioning of Potline Director(P&A), Shri A.K. Sharma, Executive Director (S&P) and other Senior Officials, were present during the lighting up of the new Boiler. The Boiler light-up marks the commissioning of 2nd phase expansion project. Commissioning activities at other units like Bauxite Mines, Alumina Refinery and Smelter plant are also going on simultaneously. Shri C.R. Pradhan, CMD I/c, formally switched on the first pot of the 4 th potline at S&P Complex, Angul on December 26, which marks the commissioning of 2 nd phase expansion of the Smelter. Others present on the occasion were: Shri P.K. Routray, Director (Production), Shri Joy Varghese, Director (P&A), Shri A.K. Sharma, Executive Director (S&P), Shri Ashok Sapra, Executive Director (Project & Technical) and other senior officers, besides Shri Dillip Mishra, Working President & Shri Nirmal Samal, General Secretary of the Recognized Nalco Employees Sangha. 6

8 PARICHAYA N A L C O A W A R D E D Niryat Shree award for Nalco Nalco has bagged the prestigious Niryat Shree award for excellence in export for the Instituted by the Federation of Indian Export Organisations (FIEO), the award was received by Shri C.R. Pradhan, CMD, I/c, from Shri Shankar Singh Vaghela, Union Minister of Textiles, in the presence of Hon ble President of India, Smt. Pratibha Devisingh Patil, in New Delhi on December 16. During , Nalco exported 8.62 lakh tonnes of alumina and 95,747 tonnes of aluminium, earning a foreign exchange of Rs crores, against Rs crores in the previous year. To build a healthy corporate image, by highlighting the strengths of the Company and to showcase latest achievements, Nalco has been participating in various exhibitions both at the national and international level. Participation in these exhibitions has helped Nalco in development of new business relationships, sales contracts and the identification of long-term opportunities. International Expo 2008 Nalco Participated in the 7th International Mines, Minerals, Metallurgies and Materials Exhibition held at India Expo Centre, Greater Noida, from November 13 to 16. In the exhibition, Nalco had put up an attractive stall which was awarded for the best design and concept. and about 200 delegates from India and abroad participated in this mega event. On the occasion, Shri C.R. Pradhan, CMD I/c has been elected as the President of ICSOBA for two years i.e., As the chief sponsor Nalco had also put up a stall showcasing the Company s core strengths. ICSOBA 2008 Nalco as the chief sponsor, organised & participated in the Xth International Congress of International Committee for the Study of Bauxite, Alumina and Aluminium held at Bhubaneswar from November 27 to 29. International Committee for Study of Bauxite, Alumina and Aluminium (ICSOBA), is a premier international organization based in Budapest, Hungary (now shifted to Nagpur, India in 2008). The International Congress was held for the 1st time in India India International Trade Fair, New Delhi Nalco participated in the India International Trade Fair, held at Pragati Maidan from 14th to 27th November. As a pride of Orissa, Nalco had put up a stall in the Orissa Pavilion. 7

9 V I P V I S I T PARICHAYA Mines Secretary s Maiden Visit Shri Shantanu Consul, Secretary, Ministry of Mines, Govt. of India, visited Corporate Office, Bhubaneswar and S&P Complex, Angul from November 20 to 22. During his visit to Angul, Shri Consul accompanied by Shri C.R. Pradhan, CMD I/c and Shri A.K. Sharma, ED (S&P) visited various sections of S&P Complex and interacted with the Senior At Corporate Office Secretariat on November 21, towards Chief Minister s Relief fund for rehabilitation works in the flood-ravaged areas. In course of discussion with the Hon ble Chief Minister, at the State Secretariat, Shri Consul advocated for the allotment of two Major Bauxite Mines i.e., Potangi and Sasubohumali to Nalco. At S&P Complex Officials of Smelter and Captive Power Plant. Shri Consul addressed the employees at S&P Complex Training Centre Auditorium and also interacted with the representatives of Unions and Officer Associations of S&P Complex. During the visit, Shri Consul initiated the charging of 220 KV Switchyard & Station Transformer under second phase expansion of S&P Complex. At the Corporate Office, Shri Consul held meetings with the CMD, Directors and Senior Officials. The Secretary Mines also took stock of the situation related to coal crisis. Later at the State Secretariat, Bhubaneswar. On behalf of Nalco, Shri Consul, accompanied by Shri C.R. Pradhan, CMD I/c, Shri Joy Varghese, Director (P&A), and Shri K.N. Ravindra, Company Secretary handed over a cheque of Rs. 5 crore to Shri Naveen Pattnaik, Hon ble Chief Minister, at the State Shri Shantanu Consul, Secretary Mines, Shri C. R. Pradhan, CMD I/c, Shri Joy Varghese, D (P&A) and Shri K.N. Ravindra, Company Secretary, handing over the cheque to Hon ble Chief Minister, Shri Naveen Pattnaik Shri Shantanu Consul initiating the charging of 220 KV Switchyard & Station Transformer under second phase expansion of S&P Complex 8

10 PARICHAYA C R E A T I N G A W A R E N E S S Vigilance Awareness Week I would prefer even to fail with Honour than win by cheating. Sophocles As part of the persuasive drive from the Central Vigilance Commission, vigilance awareness week is observed to create awareness among the employees regarding the menace of corruption. Employees in various Govt. departments and PSUs throughout the country take a solemn pledge to work with integrity, transparency and dedication in their respective spheres of activity. Nalco joined the nation in observing the vigilance awareness week in its Sites and Offices from November 3. At the outset, vigilance pledge was administered to the employees, followed by a week-long activities, including talks, seminars and competitions. To mark the occasion, exclusive posters were produced by the Company and displayed at its Sites and Offices. Administration of pledge at Corporate Office L to R: Shri P.K. Routray, Director (Production), Shri K.K. Mallick, Director (Commercial), Shri C.R. Pradhan, CMD I/c, Shri Joy Varghese, Director (P&A) & Shri G. Kameswara Rao, CVO. At M&R Complex: Seminar on Efficiency through vigilance. Seen in the picture: Shri P.K. Mohapatra, ED(M&R), Shri B.N. Mohanty, GM(AR), Prof. Dr. Bimalendu Mohanty, former Vice-Chancellor, Utkal University of Culture, Dr. S.N. Mishra, Prof. in Pol. Science and Shri R.P. Swain, GM(H&A) Some of the exclusive posters produced to mark vigilance week At S&P Complex: Administration of pledge during vigilance awareness week Administration of pledge at Port Facilities, Vizag 9

11 U N I O N S & A S S O C I A T I O N S PARICHAYA New office-bearers Following Office-bearers of Nalco Employees Association, Damanjodi, were unanimously selected for : President : Shri VHN Murty Vice-Presidents : Shri Anirudha Khosla, Shri Tilak Ram Nial General Secretary : Shri Bikram Hota Joint Secretaries : Shri Bijay Kanhar, Shri B.P. Bauri Treasurer : Shri N. Mohanty Recognition Certificate Following Office-bearers of Nalco Mazdoor Sangh, Damanjodi, were unanimously elected for the year : President : Shri Bipin Bihari Mohapatra Vice-Presidents : Shri Alok Choudhury, Shri Dalapati Nayak General Secretary : Shri Alekh Naik Secretaries : Shri Somnath Mohapatra, Shri Pravakar Jena Finance Secretary : Shri Mohan Sumamudi Org. Secretary : Shri S.K. Maharana Asst. Org. Secretary : Shri Nabaghana Patra Office Secretary : Shri Iswar Chandra Patra Asst. Office Secy. : Shri Anam Charan Nayak Coordinator : Shri Alok Rath Asst. Coordinator : Shri Upendra Patra Nalco Mazdoor Sangh has been accorded recognition for a period of three years from October 17. Shri B.N. Mohanty, GM(AR), handed over the Certificate of Recognition to Shri Bipin Bihari Mohapatra, President and Shri Alekh Naik, General Secretary of the Nalco Mazdoor Sangh in the presence of other senior executives and members of the Union. Nalco Employees Sangh (NES), affiliated to INTUC has been accorded recognition on December 10. Shri R.N. Jena, DGM (Cast House), Smelter, handed over the Certificate of Recognition to Shri Nirmal Samal, General Secretary of NES at a function organized at the Conference Hall, S&P Complex. Among others, Shri D.C. Sahu, GM (Finance), Shri Ashok Sahu, DGM(HRD), Shri Pradosh Mohanty, DGM(Admn.), along with the office bearers of NES, Shri Dilip Mishra & Shri C.R. Behera, (Working Presidents) and other members were present on the occasion. Nalco Non-Executive Employees Union (NNEU) has been accorded recognition on December 10. In a function organized at the Conference Hall, S&P Complex, Shri P.K. Pattnaik, GM(O&M), CPP, handed over the Certificate of Recognition to Shri Amar Behera, General Secreatary, NNEU. Earlier, the election for the Office-bearers was held at CPP on November 14. Long Service Award Under Nalco Long Service Award Scheme the Company has decided to suitably reward the employees in recognition of their long, continuous and satisfactory services in Nalco. Altogether, 220 employees of Smelter and Power Complex, (142 from Smelter & 78 from CPP) were awarded under this scheme. The employees received their awards, i.e. certificates and gift coupons at a glittering function organized at the training centre auditorium, S&P Complex. Shri A.K. Sharma, ED(S&P), handed over the awards to the employees, while Shri S.S. Patnaik, GM(H&A), proposed a vote of thanks, on the occasion. 10

12 PARICHAYA O B I T U A R I E S Veteran Ex-Nalconian Shri S.H. Azad former Director(P&T) passes away Smt. Tulabati Kuldip (43), who was working as Sr. SSW, Horticulture Dept., Refinery Unit, Damanjodi passed away on October 29 due to illness. Born on , Late Smt. Kuldip had joined Nalco on as unskilled worker in Horticulture Dept. She is survived by her husband Anand and three children. Shri Badi Bhoi (44), who was working as Sr.SSW, Mechanical Dept., Refinery Unit, Damanjodi expired on November 18 due to illness. Born on , Late Shri Bhoi had joined Nalco on as SSW. He is survived by his wife Kuni and daughter Subarna. Nalco family expresses heartfelt condolences on the sad demise of Shri Shahid Hussain Azad on Shri Azad joined NALCO in May 1984, as the Director (Projects). Born on 13th April, 1937, at Shahjahanpur in UP, Shri Azad spent his early years in Nainital, Dehradun and Almora. After graduating in Mechanical Engineering from Aligarh University In 1958, Shri Azad, prior to joining Nalco, marched through Railways, erstwhile NCDC and SAIL at Bokaro Steel. When Shri Azad assumed charge, Nalco was in formative years, in the midst of hectic project activities. Shri Azad was soon everywhere monitoring, interacting helping, guiding and directing people to achieve the set targets of the project. Success appeared to be a natural ingredient of his personality. Nalco immensely benefited from that golden touch - be it putting back into operation a fire ravaged conveyor system in record time or rescuing a ship with Nalco cargo in distress on high seas or finalizing a market tie up to the advantage of his Shri Dasarathi Sahu (42), who was working as SSW, Materials Store, Smelter Plant, Angul, passed away on August 31, following a tragic road accident. Born on , Late Shri Sahu had joined Nalco on as unskilled worker. Late Shri Sahu is survived by his wife Maharani, sons Pradyumna & Papu. Company. After an eventful career in Nalco, Shri Azad had joined BALCO in November 1991 as the CMD. Shri Azad was also a paradox of a kind, who could crack a joke while apparently sitting on a volcano of serious problems, who could talk politics, sports and thermodynamics with a layman or an expert with same élan. Friendly and informal yet who would turn extremely incisive and scathing to someone who has dodged a responsibility. Gifted with a ready wit but never snobbish. Shri Azad will be remembered in the annals of Nalco for his stalwart personality and dynamic project management. Remembering Azad Saab... The sad demise of Azad Saab came to me as a great shock! He was one of the guiding lights and greatest troubleshooters that I have ever come across in my life. His extraordinary problem solving attitude was very crucial in fulfilling the mission and vision of the Company, which is being carried forward by the successive leaders. May Almighty create many such guiding lights to safeguard the interest of Industries as well as the Society. Paying my last tribute, I pray to the Almighty to rest the departed soul in peace. V. N. Lohit His Ex- Secretary(at Nalco) Shri Ghanashyam Sahu (51), who was working as SSW, Laboratory, Smelter Plant, Angul, expired on October 28. Born on , Late Shri Sahu had joined Nalco on as Bearercum-wash boy. He is survived by his wife Meghni, daughters, Gitanjali, Ritanjali, Sasmita and sons, Jogeshwar, Hrudaya & Girija Shankar. Shri Gadadhar Naik (40) who was working as Technician, CHP Dept. CPP, Angul, expired on November 21, due to illness. Born on , Late Shri Naik joined Nalco on as Mazdoor. Shri Debaraj Sethi (50), who was working as Chargeman, CPP, Angul, passed away on November 22, due to illness. Born on , Late Shri Sethi had joined Nalco on Parichaya prays to the Almighty to rest the departed Souls in peace and provide strength to the bereaved families. 11

13 B I D D I N G A D I E U PARICHAYA On attaining the age of superannuation, Shri M.K.B. Nair, GM (R&D) retired from the services of the Company. Shri Nair had joined Nalco in 1982 as Assistant Superintendent at Smelter Plant, Angul. A touching farewell was accorded at the Corporate Office Auditorium on October 31. On the occasion, Shri P.K. Routray, Director (Production), Shri P.K. Parida, ED (Marketing), Shri P.K. Mohanty, ED (CP & BD), Shri D.B. Bhanja, GM(H&A) and others recounted Shri Nair s contributions to the Company. Shri Nair, during his service in Nalco was instrumental in establishing the dispatch & export procedure in S&P Complex and played a pivotal role in setting up the Research & Development Unit in Angul. At the farewell meeting, Shri P.K. Routray, Director (Production), handed over the Service Certificate to Shri Nair, while Shri P.K. Mohanty, ED (CP & BD), handed over the cheque and Shri D.B. Bhanja, GM(H&A) presented Shri Nair with a plaque. Shri Bitanjaya Senapati, Senior Foreman, Gr I, Technical Services Dept. retired from the services of the Company on attaining the age of superannuation on October 31. In a touching farewell organized at the HRD Centre, M&R Complex, Damanjodi, his colleagues shared their working experiences with Shri Senapati and recounted his contributions to the Company, besides fondly remembering his initiation of organizing health and yoga camps in Damanjodi. On the occasion, Shri P.K. Mohapatra, ED (M&R), presented a gift to Shri Senapati, while Shri B.N. Mohanty, GM (AR) presented the memento and Shri R.P. Swain, GM (H&A), handed over the service certificate. On attaining the age of Superannuation, Shri Udayanath Puhan, Manager (Mechanical), CPP, Angul, retired from the services of the Company on November 30. In a function organized at CPP, Shri Puhan was accorded a touching farewell by the employees of CPP. Shri R.P. Srivastav, GM(CPP), handed over the service certificate to Shri Puhan and Shri P.K. Pattnaik, GM(O&M), CPP, presented him a memento on behalf of the Company. Dr. S.K.Patnaik, Dy. Medical Superintendent, Nalco Hospital, Damanjodi, retired from the services of the Company on attaining the age of superannuation on August 31. Dr. Patnaik was accorded a touching farewell at the Nalco Hospital, Damanjodi, by his colleagues. Among others, Dr. S. Mishra, DGM (Medical)-cum-Medical Superintendent shared the feelings of working with Dr. Patnaik. In his turn Dr. S.K.Patnaik, also thanked all for their goodwill and support. Parichaya also joins others in bidding the retired employees adieu and prays for their good health and happiness. 12

14 PARICHAYA S P O R T S Inter-Unit Badminton Anuradha Awarded Inter-Unit Badminton Tournament was organized by Nalco Community Centre Welfare Committee at Nalconagar, Bhubaneswar from November 14 to 16. Shri C.R. Pradhan, CMD I/c, inaugurated the tournament, in the presence of Shri B.L. Bagra, Director (Finance), Shri S.C. Dash, ED (Finance) Nalco s ace athlete Anuradha Biswal has been awarded a cash award of Rs /- for her outstanding performances achieved in athletics in the year The award is being given as a cash incentive to the Sportspersons by the State Sports & Youth Services Department, Govt of Orissa for promoting Sportspersons and sports activities in the State. Athlete Anuradha, received the cash award from Shri S.C. Hota, State Election Commissioner, in a glittering function organized at Bhubaneswar on January 23. Nalco Open Tennis Tournament and President of Nalco Community Centre and Shri A. K. Sahoo, GM (MS&A). Fourteen players each from Corporate office, S&P Complex, and M&R Complex participated under various categories. On the Concluding Day, Prizes were given away to the winners by Shri Joy Varghese, Director (P&A) in the presence of Shri S.C. Dash, ED (Finance) and Shri D.B. Bhanja, GM (H&A). S.P. Das bags Gold Shri S.P. Das, Sr. Accountant, Smelter Plant, Angul, bagged gold medal in Men s Doubles (Partnering Shri Amerendra Behera) in Standing Lower Category at the 7th National Badminton Championship for the differently able, held in Bangalore from August 8 to 10. Shri Das, led a 5-member, Badminton team, representing Orissa. In the tournament, Orissa team won 3 gold, 2 silver and 2 bronze medals. Sponsored by the Company, Bhubaneswar District Tennis Association organized the 1st All Orissa Nalco Open Ranking Tennis Tournament at Kalinga Stadium, Bhubaneswar, from December 12 to 14. Around 200 players from 20 districts of Orissa participated in the tourney. Shri B.L. Bagra, Director (Finance), graced the inaugural session as the chief guest and inaugurated the tournament while on the concluding day Shri C. R. Pradhan, CMD I/c and Shri Joy Varghese, Director (P&A) handed over the prizes to the winners. CISF Volleyball Tournament An inter-unit CISF volleyball tournament was held at CISF PT ground, S&P Complex, on October 6. Shri S.K. Sinha, Sr. Commandant, CISF, inaugurated the tournament in the presence of other senior officials of CISF. In the opening match, Nalco A team defeated K-STPP, Korba, while in the final match PPT Paradeep emerged as the champion by defeating KST-PP, Korba. Altogether 6 teams participated in the tournament. In the concluding ceremony, Shri P.K. Mohanty, DGM(Admn.) handed over the champion trophy to the winning team. 13

15 S U G G E S T I O N S C H E M E PARICHAYA Sarjana Awards Nalco promotes employee's participation in enhancing production, productivity and saving on cost, through various means. The Suggestion Scheme Sarjana is one such endeavour, which has been eliciting good response over the years. This year too, on the occasion of Independence Day Celebrations, cash awards and certificates were handed over to the employees who made valuable suggestions. Here we present the list of winners from Mines& Refinery Complex, Damanjodi and Smelter and Power Complex, Angul, along with their suggestions. Congratulations from Parichaya. M&R Complex Suggested, modified and installed the flow measurement system in slacker line with DCS control at lime handling area reduces the lime chocking, easy flow measurement and maintain the lime density of individual stacker. P.D. Chavan Asst. Mgr (C&I) A.K. Dalai Technician-II S.K. Parida Chargeman-II P.K. Sethy Technician-II Suggested, designed and modified the control circuit in pre heating panel of calcination Plant - A reduces the plant startup time and production loss. P. Jena L. Soren Jr. Manager Chargeman-I S.Samal R.N. Sahu Technician-II Chargeman-II Suggested, designed and modified and installed the DCS base automatic control system for cooling tower 3A equipments reduces the failure of tripping of boiler and bring more flexible in the system. A. Panda A.K. Nayak Asst. Manager Dy. Manager (E&I) R.K. Behera Technician-I Suggested, fabricated and rectified PA fan shaft one end through cutting, machining and welding for plant requirement and increase the Mill availability. N. Arun Raju B.K. Behera Asst. Manager Chargeman-II M.M. Rao Chargeman-I T.P. Singh Technician-I N. Moharana Chargeman-I S. Guha B.Gallari Technician-I SSW Suggested and modified the discharge lines of the air blowers by interconnecting seed filter number AB501 and AB502 with provision for blind or through provides more flexibility of the system and increase availability. P.K. Swain R.C. Duvvada Asst. Engineer Asst. Manager (Chemical) (Mechanical) Suggested, designed and modified the chute wall in between belt drum side and chute wall through a metal plate eliminates the bolder jamming due to ore spillage and reduces the production loss in feeder conveyor stream-2 at C&C, Mines. R.N. Malik Asst. Manager P. Biswal Chargeman-I A.V. Manoj Asst. Manager(E&I) P.C.Mathew Chargeman-I B.H. Biswal Chargeman-II T.C. Burman Chargeman-I A.K. Sahu Foreman(Mech) D. Hantal Technician-II B.K. Jena K.K. Mali Technician-II Sr. SSW-I Suggested, designed and modified a protection system for rotor of wagon tippler main motor, brings indication at cotrol room for any abnormality & early detection of problem. A.K. Sethy G. Nayak Chargeman-I Sr. SSW-I Suggested and modified the bearing locking of planetary gear box by providing a spacer with a key arrangement in between gear and bearing resulted the arrest the movement of coupling dislocation and bearing damage. H.H. Naik SSW G.Takri USW Suggested designed and modified Digester gear box by making a groove on the pump surface to arrest oil leakage through O ring arrangement resulted increase availability and timely replacement. S. Parida D. Mali Technician-II Sr. SSW-I Suggested, designed and modified the shaft fixture hook attachment in cable belt conveyor eliminates the belt drum lifting shaft alignment problem and minimizes the maintenance time. N.S. Sudhakar Sr. Manager D.R. Panda Jr. Manager M.P. Ekka Asst. Manager K.C. Behera Dy. Manager P.K. Bohidar Chargeman-II A.K. Pattnaik Sr. Foreman (Mech) 14

16 PARICHAYA S U G G E S T I O N S C H E M E J. Sahu S.K. Das Chargeman-I Chargeman-II Suggested, designed and installed the guide close to the agitator shaft eliminates the dislocation of the agitator shaft during maintenance in tank 961 at new 04 area. Awardee B.M. Marandi Chargeman-I Suggested and modified 132 KW CGL motor DE side grease cup in between driving side shaft and grease cup through O ring arrangement eliminates caustic ingress into the motor & frequent failure. Awardee S.K. Subudhi Chargeman-II Suggested, modified and reused the ceramic nozzles in atomiser with suitable readjustment, increases the life of ceramic nozzles and avoid immediate replacement at Zeolite plant. Sankarsan Biswal Sr. Foreman(Mech) Labanya Raju Chargeman-II Suggested, fabricated and installed thin metal sheet partition in between two compressors, eliminates frequent tripping and avoid sudden hot air rise in copressor at SGA plant. Sankarsan Biswal Mrutunjaya Dash Sr. Foreman(Mech) Manager (Mech) Suggested, designed and modified the pipe line for dry ash conveying system at #3 & #4 ESP resulted to increase the dry ash utilization system and availability of the system. Ramesh Sethy D.K. Gantayat Chargeman-II Chargeman-II Suggested and modified the LET dome inlet valve with detachable seal ring. eliminates the frequent replacement of rubber seal and maintenance time at #4 dry ash system. D.K. Gantayat Chargeman-II Suggested and install a limit switch in slew circuit in the old reclaimer to prevent breakdown while touching the new stacker side during reclaiming resulted to easy maintenance and prevent damage of bucket in 52 area. S.N. Moharana Sr. Foreman (Elect) S.N. Sahu Chargeman Chaitan Bhatra Chargeman R.L. Ho Chargeman B.S.Rao Sr Technician Smelter Plant Replacement of plant view and installation of computer based operator interface station at Cast House-B. S.K. Kalyan SM (E&I) P.K. Sahu G.B. Senapati JM (E&I) JM (E&I) Modification of flue wall lifting device lifting arrangement in Bake Oven-II S. Choudhury AM (Mech.) S. Bhutia S.K. Dehury Chargeman Technician N.S. Subramaniam S.M. (Mech.) Modification of anode grab levelling correction device of FTA-3 of Bake Oven-I MN Biswal Mgr (Mech) S. Dash Technician S. Majhi K.C. Behera Chargeman Chargeman N.S. Subramaniam SM (Mech.) Repair of gulper lower section pipe in FTA-3 of Bake Oven-I M.N. Biswal Mgr (Mech.) R.C. Munda Chargeman K.C. Behera Chargeman D. Mohapatra CM (Mech.) Modification of grab close/open gear box of FTA-2in Bake Oven-I MN Biswal L. Sahoo Mgr (Mech.) Chargeman T. Dehury S.Mallick Sr. Foreman Chargeman N.S. Subramaniam SM (Mech.) Repair of telescopic filler pipe of FTA- 3 in Bake Oven-I MN Biswal S. Dash Mgr (Mech.) Technician L. Sahoo P.N. Behera Chargeman Chargeman N.S. Subramaniam SM (Mech.) Modification in U-62A dynamic separator in Ball mill circuit for remote changing speed from OIS in GAP-I V. Kumar N.K. Mishra JM (C&I) Sr. Foreman D. Prasad L. Kamson Mgr (Elect.) JM (Elect.) D.B. Kanugno S. Sarkar Chargeman Chargeman S. Mishra CM (E&I) Provision of drained HFO storage tank in Bake Oven-II A. Biswal JM (Met.) S. Choudhury S.N. Pradhan AM (Mech.) Technician S. Bhutia S.K. Dehury Chargeman Technician P. Sahoo Manager (S) Design and fabrication of Pot outlet duct alignment mobile fixture N.K. Nayak H.K. Nambothiri Mgr (Mech.) JM (Mach.) T. Samal S.S. Dash Sr. Foreman Chargeman J. Biswal T. Dehury Sr. SSW Sr. Foreman G.C. Mohapatra CM (Mech.) Modification of recirculation feeder of SC 505 of FTP-5 N.K. Nayak H.K. Nambothiri Mgr (Mech.) JM (Mach.) T. Samal S.S. Dash Sr. Foreman Chargeman J. Biswal P.K. Behera Sr. SSW Chargeman G.C. Mohapatra CM (Mech.) Modification of high temperature and high pressure circuit in ELGI compressors in PTMs K.C. Jena S. Pradhan DM (Elect.) Chargeman B.K. Sahu S. Hembram Chargeman Technician G.S. Ekka CM (Elect.) Modification of cooling conveyor tensioning system in ICM of Cast House - B T.K. Mohapatra D.D. Sahu AM (Mech.) Technician S. Mohanty Manoj Sahu Technician Technician V. Senthil Mgr (Mech.) 15

17 S U G G E S T I O N S C H E M E PARICHAYA Provision of emergency power source to UPS system of ICM and melting furnance of Cast House-B B. Himeshbabu D.K. Padhi JM (Elect.) Sr. Super. P.K. Behera CM (Elect.) Protection of plate heat exchanger and induction furnace coils in cathode sealing shop. P.C. Sahoo U. Hembram Sr. Foreman Chargeman S.K. Sahu P. Sahoo Chargeman Chargeman R.K. Das Mgr (Mech.) Strengthening clamp actuator assembly in Potline-III PTMs B. Hansdah C.M. Naik Chargeman SSW N. Pradhan R.K.Nitinware Technician AM (Mech.) B.C. Moharana Mgr (Mech.) Modification of the anode hoist hydraulic cylinder of PTMs A.S. Sharma R.K. Nitinware JM (Mech.) AM (Mech.) N.C. Nayak L. Das Chargeman Chargeman H.S. Bisoi N. Pradhan Chargeman Chargeman B.C. Moharana Mngr (Mech.) Modification of bumper limit switch of lifting beams in Potline I & II B.K. Samal S.N. Munda Chargeman SSW A. Amant J. Samal Chargeman Chargeman K.C. Jena DM (Elect.) Modification of feeding mechanism of PLC based circular saw machine at CRS T. Dehury Sr. Foreman B.K. Swain C.R. Hemoram Sr. Foreman Chargeman J.K. Singh S. Biswal Technician Sr. SSW B.K. Mallick M.K. Behera Chargeman Technician S. Ghosh SM (Mech.) Captive Power Plant Improvement in coal finness S. Tudu. Chargeman K. Samal BN Adha SSW CM(Mech.) ESS Rao CM(Mech.) Safe evacuation of leakage Chlorine from tonner placed outside the stand for stream 1 to 3 P.K. Saran CM(Mech.) BK Maity SB Baidya CM(Mech.) Sr FM(M) G. Marandi DK Pattanaik Techn. Sr. SSW B Mizn CM(Mech.) Improving drinking water supply to tiffin room near UCR #3 KC Dash BC Roy SM(Mech.) SM(Mech.) GC Dawn MP Behera DM(Civ.) JM(Civ.) Installation of stand by pump & blower of chlorine absorption system CR Mohanty AE (Mech) GD Samal BN Adha Sr. FM (Mech.) CM(Mech.) KK Roy PK Sahu Ch. Man Sr. SSW PK Saran CM(Mech.) Provision of standby source auto switching of 220V DC supply to FSSS panel AK Mishra Mgr(C&I) VV Seshan BD Sahu AM (C&I) Ch. Man RK Sethi Miss M Minz Ch. Man Techn. SR Nayak CM(C&I) Provision of SADC position indication Awardee AK Mishra Mgr(C&I) VV Seshan P Mohan AM (C&I) Mgr (Mech.) PK Jena BK Swain Ch. Man Ch. Man GS Ray CM(C&I) Auto changeover provision 110V AC supply of FSSS system AK Mishra Mgr(C&I) VV Seshan PK Jena AM (C&I) Ch. Man B Sahu Miss M Minz SSW Techn. SR Nayak CM(C&I) SACP & GOP panel indication circuit modification CR Das CM (E) BK Sharma S Das Techn. AFM (E) AN Mishra CM(Elect.) Trip circuit healthy modification for LT Air Circuit Breaker BK Sharma S Das Techn. AFM (E) CR Das CM(Elect.) Reliability for home position feedback of water wall soot blower CR Das BK Sharma CM(E) Techn. S Das AN Mishra AFM(E) CM (Elect.) LK Swain CM(Elect.) Energy saving with replacement of 40watt FTL with 70 watt HPSV in the AWPH and chiler room. R Talwar SM (E) GC Pradhan PC Sahoo Sr. FM Ch. man RC Majhi NK Bhoi Ch. man Techn. MC Ghadei CM(Elect.) Modification of trip circuit of 6.6KV S/G of CWPH & installation of trip supervision relay CTSR R. Talwar MD Lenka SM (Elect.) Sr. FM AK Jena BD Samal Ch. man Techn. MC Ghadei CM(Elect.) Modification in the power supply distribution board of administrative Building KK Sahoo Mgr. (Elect.) GC Pradhan PK Mohapatra Sr. FM Ch. man NC Samal BK Senapati Ch. man Ch. man MC Ghadei CM(Elect.) Provision of annuciation S/Y control room for AC supply faliure to 220KV breaker compressor. KK Acharya GC Mishra Ch. man Ch. man PK Sethi PK Dash Sr. SSW SM (Elect.) SC Das CM(Elect.) Installation of AB switch 33KV Ash Pond Feeder. GC Mishra SG Majhi Ch. man Ch. man B. Mohapatra PK Sethi Sr. SSW Sr. SSW BK Das CM(E) Provision of annunciation in S/Y control room for coil monitoring of luck-out relay. PK Dash KK Acharya SM (Elect) Ch. man SG Majhi B. Mohapatra Ch. Man Sr. SSW BB Nayak DGM (Elect.) Control circuit modification for O mtr Air Washer Room of #6 PAK Ekka DM (Elect.) GC Garnaik SK Panda Techn. Techn. A Pradhan PK Pradhan SSW JOT MC Ghadei CM(Elect.) Use of reject coal debris in construction of aproach road. SR Panda CM Mundari AM (Civil) Sr. FM (Civil) KK Kasyap CM(Civil) Modification of APH lubricating oil system. NK Rout CM (Mech.) DK Nanda RK Naik Mgr(Mech.) Sr. FM BN Das HK Das Ch. Man Ch. Man RS Das CM (Mech.) 16

18 PARICHAYA M I S C E L L A N Y Supporting a Worthy Cause. Bharat Prativa Samman The Engineers of Nalco, S&P Complex, extended their support towards the flood affected victims of Orissa, by collectively contributing Rs.51000/- towards Chief Minister s Relief Fund. On behalf of the Engineers, S/Shri Subhendu Nayak, Himanshu Routray, Nihar Pradhan and Manoj Panda handed over the cheque to Hon ble Chief Minister Shri Naveen Pattnaik. Nalco Officers Association, M&R Complex, also collected Rs.2,03,333/- from its members through voluntary contributions for the flood affected victims. On behalf of the association, Shri L. Ghanto, President I/c and Shri P.K. Satapathy, General Secretary of the association handed over the draft to the Hon ble Chief Minister Shri Naveen Pattnaik at the State Secretariat on November 20. Flood Relief by S&P Complex Shri A.K. Sharma, ED(S&P) Complex, in the presence of Shri S.S. Patnaik, GM(H&A), Shri D.C. Sahu, GM (Finance) and Shri S.K. Sinha, GM(Mat.), flagged off a truck loaded with relief materials for flood affected victims of Banki village on September 29. Dr. C.R. Mishra, DGM (R&D), Corporate Office, has received Bharat Prativa Samman 2008 from Shri Devi Prasad Mishra, Hon ble Minister of Tourism & Excise and Shri Samir Dey, Hon ble Minister of Higher Education & Pension, Govt. of Orissa, for his contribution to Public Understanding of Science and Technology. Dr. Mishra received the award on the occasion of 9 th Annual Day celebration of Jay Bharat Trust & Bharat Masala at Cuttack on September 3. Young Achiever Shri Balgopal Raju, GET, Operation Dept, CPP, has come up with his latest book (based on engineering syllabus), Micro Processor & Micro Controller. Shri Raju had already published two more engineering syllabus books i.e. Basic Electronics and Digital Signal Processing. It may be mentioned here that, Shri Raju was a lecturer in one of the engineering colleges, prior to joining Nalco. Wedding Bells Nalconian & National Footballer, Ms Ranjita Mohanty, got married to Shri Vinod Banerji, Station Head of BIG 92.7 FM, Bhubaneswar on July 11. Shri Manas Ranjan Behera, GET, working in C&I Department of Refinery, M&R Complex, Damanjodi, got married to Debasmita of Cuttack on November 24. Parichaya congratulates the newly wed and wishes the couple a happy married life. 17

19 National Aluminium Company Limited 30 January 2009, Issue 2 N vision e-newsletter of Project N vision This e-newsletter is also available on the intranet Inside this issue: The future Nerve Center Data Center. What are we doing in our organization today? What are we getting into? What does this achieve? What will change? What are the major components of change? How are we preparing for change? Twenty years from now you will be more disappointed by the things you didn t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover. MESSAGE OF DIRECTOR (COMMERCIAL) Dear Colleagues, Letter from the Project Manager A supplement on ERP The ERP N vision Project is well underway and an important milestone had been achieved earlier this month when the Data Centre was inaugurated on 07 January There are important changes that will take place, since we will be moving to an integrated software environment that allows information capture & flow seamlessly across the organization. This vital change will mean that we will have embarked on a journey of learning new skills and abilities with a new sense of discipline, all of which will be important in paving a successful path for the implementation. This migration from the existing environment to an ERP environment depends in large measure, on all of our willingness to accept the change at the earliest and also assimilate them into our work-culture. The days ahead will be demanding on the implementation team as well as all the users who will be working on the ERP. The organization is committed in ensuring that the process of change is smooth and I wish you all the very best for the preparation of a new chapter in your professional career. Warm Wishes for a Happy New Year. We achieved one major milestone since the last issue. The Data Centre was formally inaugurated at NALCO Bhawan on 7th January The State of The Art Data Centre will soon become the backbone for the company s business processes in the coming days. Having said that, one of the challenges of ERP implementation is the Management of Change. To put the matter of change in a proper perspective it will be correct to cite this as being critical to the implementation process itself. The core teams that are working with the implementation partners have had to go through a process of change and it would not be out of place to mention that it has been a challenge for them. To understand what this change is all about it is necessary to know what we are doing now and what we are getting into. This issue primarily delves into the subject of change and how we will all be affected and its management. As ever, we will welcome your feedback. K.S.SREEDHARA GM (SYSTEMS) The future Nerve Center Data Center Business sensitive and mission critical systems, such as an ERP, have to be matched with infrastructure with the ability to support the requirements of such complex set up. A State-of-the-Art Data Centre has been set-up at NALCO Bhawan. The Data Centre houses the ERP & IT services servers and will be the Network Operation Centre (NOC) for the entire organization. The Data Centre is designed for 24x7 operations. Major civil items of the Data Centre are 2 hours fire rated. A pair of 80KVA Un-interrupted Power Supply (UPS) provides 415V, 3-phase power to each server & battery backup of 30 minutes. This will ensure non-stop operation even when one UPS and battery bank is down. In the event of power failure an auto switchover has been provided to 140 KVA DG Set. Bottom discharge Precision AC have been installed in the server room to maintain the temperature at 21ºC and humidity at 50% RH. contd...

20 A supplement on ERP N vision To protect the ERP servers from threat of fire, laser based Very Early Smoke Detection and Alarm (VESDA) system with FM200 gas based suppression system, that can extinguish fires in a matter of 10 seconds, have been installed. To ensure security, access to the data centre is controlled through biometric technology for the server room and proximity technology to the NOC and Utility room. All movements in the data centre are monitored and recorded through IP based CCTV with the help of 8 motion sensitive cameras. An integrated Building Management System has also been implemented comprising CCTV, Water Leak detection System, Fire Alarm & Fire Suppression Systems, Access Control System and Rodent Control Systems. These will be used for constant monitoring, control and protection of the data centre there by ensuring a reliable and Always-Available IT service. What are we doing in our organization today? Like any organization that is in the throes of implementing an ERP system, we have fragments of information. We collect, enter, generate & store large amount of data which are available across separate computer systems, servers, locations, office, an individual or computer. These are known as legacy systems. Although they are not available in a single repository they provide vital input & output to the business processes. They also create a business complexity. By maintaining data the way we do presently we spend considerable amount of resources in creating compatibility, formatting & transferring data from one system to another, updating programs, maintaining redundant data & obsolete programs to name a few. The end of it all the data in the organization s landscape do not talk to each other which is why we are required to reconcile records regularly & re-confirm data. At the end of it all the data in the organization s landscape do not talk to each other which is why we are required to reconcile records regularly & re-confirm data. What are we getting into? At the heart of an ERP is a comprehensive database, which receives and feeds data to the modules which make up the ERP. In SAP this is the ECC 6.0, which has the data for all the modules to share. The database virtually supports all the business activities of the company across all functions, units & locations. Whenever any new information enters into the system at any location it updates all related and connected information, automatically. What does this achieve? An ERP, like SAP, streamlines the data flow within and across the organization providing the management direct access to an entire mine of real-time operating & financial data. In addition to this the ERP has the capability to impact the company s culture by allowing it to streamline its structure. The ERP also achieves in centralizing information as well as its control and importantly standardizing process. What will change? The transition from our present environment to a highly integrated business system calls for a leap in the thinking process. A task which is not easily achievable considering that we have been so used to working in islands with little or no integration. Such a leap is important because an action in business process has an impact in several business processes. ERP Systems are born to provide an integrated system which is capable of handling far more complex transactions and yet providing a highly dependable system.

21 A supplement on ERP N vision The fundamental shifts brought about by the ERP implementation at NALCO is listed below From Batch Processing to Online Transaction Processing From functional focus to Process focus From individual operation to Team Performance From paper based documents to Electronic Documents From availed service to Self Service From physical signature based approvals to Electronic Approvals What are the components of change? As has been highlighted earlier, we have documented the Future State of Business Process at NALCO. This has been presented to Senior Management of NALCO. This document depicts the manner in which business would be conducted with the usage of SAP ERP. Undeniably, such actions would require familiarity with SAP best practices. Any transition has many faces and attributes. Some of these attributes of SAP ERP related changes are listed below Nomenclature : While implementing SAP, the core team and users are made familiar with terminologies such as Organisation Structure, Valuation Class, Goods Receipt, Stock keeping units, quality stock, unrestricted stock, work centre, activity type, personnel area, personnel action, MRP, Demand planning, Advanced Planning and Optimisation, Master Inspection Characteristics,Quality Plan etc. Some of these are new for us and some are re-phrased terms already in use at NALCO. Structure : To facilitate the ERP implementation, the Organisation, Plants, Profit Centres, Cost Centres, Storage locations, Purchase locations, sales divisions and distribution channels are mapped into an Organisation Structure. The Organisation structure is a key element around which all the business transaction would happen. For Example : at NALCO there shall be five profit centres ( Accounting units). Data organisation : At the heart of any ERP implementation is the central database. The database is organised in various masters with improved set of codes. An improved code structure for Products, Accounts, Vendors, Customers, Employees shall be put in place. There are changes in the code length and content. Some types of codes shall be created generated by the system. For example the new chart of accounts shall not include cost centre. Cost centres are dealt separately in the Controlling module of SAP. Be the CHANGE you want to see in the world. Mahatma Gandhi Business Processes : A brief list of business process enhancements planned with ERP is detailed below No physical movement of SRV for payment to vendors; instead there shall be electronic flow of documents Consumption based MRP planning of Auto-procurement items and release of Purchase Order against Rate Contract Online vendor registration No tender opening committee Online floating of tenders and collection of bids Electronic price bid evaluation Ledger accounts for purchase, stocks and consumption of raw material, stores & spares are based on valuation class and by automatic accounting determination Immediately on confirmation of production of finished goods & semi finished goods the same is inventoried in accounts after which delivery of goods can commence. Excise posting in Accounts and RG23 is simultaneously performed for which Cenvat reconciliation may not be required. Single Excise cum Commercial invoice. Online performance appraisals Payroll inputs shall flow from HR module. contd...

22 A supplement on ERP N vision Employee roles: Employee roles shall undergo some degree of transformation due to the following reasons Capture of information at source and online updation of records. For example: when a material is procured the systems will update the inventory, updated the excise registers, tax registers and post every related financial entry at the same time. Similarly when goods are sold the system will deplete the stock, update excise registers, tax registers and post all relevant financial entries at the same time. Virtual teams who shall participate from their seats rather that sitting together. There can be multiple virtual teams for different collaborative activities such as new item creation, screening of indents, etc. Participation in personal processes such as Leave Application, Tour Application, Claims, Loan application. In this case the individual will drive the electronic flow of document. Empowering individuals and departments for actions performed by other departments/ committees. As an example for certain kinds of procurements there will be no need for Screening Committees. How are we preparing for change? In order to facilitate a smooth transition, all stakeholders shall be imparted rigorous training to familiarise them with the nuances of ERP implementation and the future state of NALCO business process. Users from various departments are being involved in the enabling processes such as Master data cleansing and preparation. Senior Management presentations are being conducted in relevant business modules. Necessary changes in the policy documents such as Stores Manual, Purchase Manual, Contracts Manual etc. are planned for incorporation in alignment with the ERP process requirements. Site visits to organizations that have implemented SAP ERP are being made by core team members. Guidance on major stages is being sought from our ERP consultant M/s PwC. FI/CO Senior Management Presentation in progress TO IMPROVE is to change, to be perfect is to change often. - Winston Churchill N vision e-newsletter of Project N vision National Aluminium Company Limited P/1, NALCO Bhawan, Nayapalli, Bhubaneswar Phone: Fax: sreedhar@nalcoindia.co.in

23 O U R C H I L D R E N PARICHAYA Ashis, son of Laxmikanti and Shri Akshaya Bhutia, (working in CPP and the President of Nalco Employees Cooperative Society), S&P Complex, Angul) and a student of class IV SVM, Angul, has been awarded second prize (Boys 10 to 12 years, in fight category) at the 21st State Karate Championship held in Bhubaneswar. Similarly, Sidhanta, son of Shri Pratap Chandra Barik and a student of class VI, DPS, Angul has been awarded 3rd prize (Boys 12 to 13 years, in Kata category) in the same competition. Earlier, Sidhanta has also won many awards in various karate championships. Amitansu, son of Shri G.S. Panda, Dy. Manager, Smelter (Pot line), S&P Complex, and a student of class IV, DPS, Nalconagar, Angul has been awarded silver medal in the 7th World Junior Kick- Boxing Championship, held in Naples, Italy from September 24 to 27. Amitansu was among the three participants, who represented India and was the youngest participant in his category. Being a 1st Degree Black Belt holder, Amitansu has many medals to his credit including a gold medal at the 22nd National Kick-Boxing Championship and gold & silver medals at the 2nd East Zone Kick Boxing Championship. Flood relief by NCC Cadets Pritis Priyadarsi, son of Shri Pabitra Mohan Pradhan, Sr. Manager (Mech.), CHP, S&P Complex and a student of Class IV, DPS, Angul, has been awarded 2nd prize at the 54th State School Chess Championship, held in Puri from November 29 to December 1. Subsequently, Pritis has also been selected to represent Orissa in the National School Championship at Tirupati. Renu Satpathy Memorial Trophies Instituted by Nalco Ladies Club, Bhubaneswar, in the fond memory of Late Renu Satpathy, wife of Late S. Satpathy, former Director (Production) of Nalco, the trophies are awarded to the students of Nalco family, securing the highest marks in Class X final examinations. Smt. Sushama Pradhan, President of Nalco Ladies Club, handed over the trophies to the winners. Following are the winners who received the trophies on 29 th Foundation Day of the Company. M. Prajakta, daughter of Shri Laxman Majhi, Chargeman, M&R Complex, and a student of Delhi Public School, Damanjodi, secured 97.4% marks in aggregate in CBSE examination. Abhik, son of Smt. Soma Mondal, DGM (Marketing), Nalco Mumbai Office, and a student of Maneckji Cooper Education Trust School, Mumbai, secured 96.1% marks in aggregate in ICSE examination. NCC Cadets of Delhi Public School, Nalconagar, Angul, through their voluntary contributions, extended support towards the flood victims of Angul District. Shri V.K. Arora, Principal, DPS, flagged off a vehicle carrying relief materials and congratulated the students for their noble initiatives. Sandhyarani, daughter of Shri Upendra Panda, Chargeman, S&P Complex, and a student of Saraswati Vidya Mandir, Angul, secured 92.87% marks in aggregate in BSE examination. Parichaya congratulates the children and wishes them a bright future. 22

24 1.2 billion people live on less than a dollar a day 960 million people are undernourished 700 million people in 43 countries live below the water stressed threshold Carbon dioxide (CO 2 ) global annual emission grew by about 80% in % of rural population in India does not have access to electricity India is projected to become third largest CO 2 emitter in 2015